Tata Deal Likely Off Table, But This Noodles Maker May Be Mulling IPO For Better Valuation

Capital Foods Limited, the creator of Ching's Secret noodles, is reportedly contemplating an IPO after prolonged discussions to offload a controlling stake hit a roadblock.

What Happened: The Mumbai-based company, owned by Invus Group, General Atlantic and founder chairman Ajay Gupta, has engaged with potential buyers, including both domestic and foreign fast-moving consumer goods giants. However, valuation discrepancies have recently slowed down the negotiation pace, Moneycontrol reported, citing sources.

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Instead, the owners think a public listing will help realise better valuation, an insider told the publication.

Capital Foods, recognised for its Chinese and Italian food products, including Ching’s Secret instant Chinese noodles, soups and condiments, has been exploring stake sale options since 2022. Talks involved interest from Tata Consumer Products (TCPL), Nestle SA and Kraft Heinz Co., but valuation mismatches have been a hurdle. The company was reportedly seeking a valuation of $1.5 billion (₹12,442 crore).

The sale process attracted attention from multinational and homegrown companies, including ITC, Hindustan Unilever, Orkla, Nissin Foods and McCormick. In September, TCPL was reportedly in the final stages of negotiations to acquire a majority stake.

Founded in 1995 by Ajay Gupta, Capital Foods initially gained backing from Kishore Biyani, CEO of Future Group, and later welcomed General Atlantic as an investor in 2018.

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Posted In: NewsAsset SalesIPOsChing's SecretKraft HeinzNestleTata Consumer ProductsTata Group